RenaissanceRe Report Net Income Of $92.4M
Bermuda-based RenaissanceRe Holdings Ltd. reported net income available to RenaissanceRe common shareholders of $92.4 million, or $2.25 per diluted common share, in the first quarter of 2017, compared to $128.0 million, or $2.95 per diluted common share, in the first quarter of 2016.
Operating income available to RenaissanceRe common shareholders was $49.0 million, or $1.18 per diluted common share, in the first quarter of 2017, compared to $66.3 million, or $1.51 per diluted common share, in the first quarter of 2016.
The Company reported an annualized return on average common equity of 8.3% and an annualized operating return on average common equity of 4.4% in the first quarter of 2017, compared to 11.8% and 6.1%, respectively, in the first quarter of 2016.
Book value per common share increased $0.92, or 0.8%, in the first quarter of 2017 to $109.37, compared to a 2.1% increase in the first quarter of 2016. Tangible book value per common share plus accumulated dividends increased $1.27, or 1.2%, in the first quarter of 2017 to $119.86, compared to a 2.6% increase in the first quarter of 2016.
Kevin J. O’Donnell, CEO, commented: “We remained disciplined during a successful first quarter renewal and constructed an attractive portfolio of risk. Our first quarter results were impacted by an increase in our combined ratio with the Ogden rate change driving prior accident years and an increase in individual claims affecting the current accident year.
“We have the right strategy to navigate a challenging reinsurance market and we are well positioned to continue to build shareholder value over the long term.”
First Quarter 2017 Highlights
- Gross premiums written increased $60.0 million, or 7.0%, to $922.1 million, in the first quarter of 2017 compared to the first quarter of 2016.
- Underwriting income of $42.4 million and a combined ratio of 88.4%, which included net adverse development on prior accident years of $33.5 million, or 9.1 percentage points, associated with the change in the Ogden rate.
- Total investment result was a gain of $97.7 million in the first quarter of 2017, generating an annualized total investment return of 4.1%.
- Repurchased 550 thousand common shares in open market transactions at an aggregate cost of $80.0 million and an average price of $145.36 per common share.
